Excelsior Correspondent
Srinagar, Apr 26: The Federation of Chambers of Industries Kashmir (FCIK) today criticized the Government’s procurement policy, asserting its adverse impact on local industrial manufacturers and the resulting deficit in the Union Territory’s balance of trade due to increased imports.
After a meeting with a delegation of the Kashmir Electrical Manufacturers Association (KEMA), the Advisory Committee of FCIK, in a statement issued, expressed disappointment over the authorities’ failure to address concerns despite repeated appeals.
They highlighted the urgent need to restore marketing support to Micro, Small, and Medium Enterprises (MSMEs) to alleviate the growing joblessness in the region.
President of KEMA, Raja Nayeem Ahmad Khan, as per the FCIK statement, drew attention to the challenges faced by electric equipment manufacturers.
He cited the adoption of General Financial Rules (GFR) by the UT government in 2019, which placed local units at a disadvantage by subjecting them to direct competition with manufacturers nationwide on the Government e-Marketplace (GeM) portal.
Nayeem further pointed out that the Power Development Department’s shift to a turn-key system of executions resulted in the exclusion of local manufacturers from ongoing schemes and programs, favoring external entities.
Under the Revamped Distribution Sector Scheme (RDSS), sanctioned by the central government last year with a budget of Rs 5200 crores for J&K, Nayeem, FCIK said, emphasized the need for fair qualification criteria in tenders to prevent the exclusion of local units and ensure equitable participation.
Illustrating the repercussions of flawed procurement procedures, Nayeem highlighted instances such as the awarding of contracts to external companies for projects that could have been executed by local manufacturers.
Acknowledging the genuine challenges faced by local electrical equipment manufacturers, the President of FCIK, Shahid Kamili, assured that the recent discussions with the Chief Secretary provided hope for the restoration of marketing support to local MSMEs.
“The Chief Secretary was acquainted with the importance of developing indigenous manufacturing capabilities and phasing out imports with local productions,” Kamili informed the delegation.
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